Phillips 66 gears up to sell new notes, add-on to 5.3% notes due 2033

Chicago, Feb. 26 – Phillips 66 Co. is in the market with a three-part senior notes offering, according to a 424B3 filing with the Securities and Exchange Commission.

The company is offering two new senior notes and an add-on to the 5.3% senior notes due 2033.

Already outstanding on the existing issue are $500 million of notes issued on May 5, 2022. The notes will be fungible with the existing issue and trade under the same Cusip.

Call protection will include make-whole premiums and then par calls that start at certain dates. The make-whole premium for the add-on series is Treasuries plus 30 basis points and then the par call option starts March 30, 2033.

Mizuho Securities USA LLC, MUFG Securities Americas Inc., RBC Capital Markets, LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc. and Truist Securities, Inc. are listed as joint bookrunners.

U.S. Bank Trust Co., NA will be the trustee.

Bracewell LLP is advising counsel for Phillips 66. Cravath, Swaine & Moore LLP is working as counsel for the underwriters.

Proceeds will be used for general corporate purposes, including to repay debt. The debt repayment may include all or a portion of the $825 million outstanding on DCP Midstream Operating, LP’s 5.375% notes due 2025, Phillips 66 Co.’s $1.5 billion delayed-draw term loan from March 27, 2023 and/or Phillips 66’s outstanding commercial paper borrowings.

Phillips 66 is a Houston-based energy manufacturing and logistics company with midstream, chemicals, refining and marketing and specialties businesses.

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